Smallcase, a leading Indian wealthtech startup, has successfully raised $50 million in its Series D funding round. The round was led by Elev8 Venture Partners, with significant participation from State Street Global Advisors, Niveshaay AIF, Faering Capital, and Arkam Ventures.
Strategic Use of Funds
The newly acquired capital is earmarked for several strategic initiatives:
- Product Diversification: Expanding the platform's offerings to include a broader range of asset classes such as mutual funds and fixed income products.
- Technological Enhancement: Investing in advanced technology and data analytics to provide investors with smarter tools for wealth optimization.
- Market Expansion: Strengthening relationships with retail investors and ecosystem partners to deepen market penetration.
Company Background
Founded in 2016 by Vasanth Kamath, Anugrah Shrivastava, and Rohan Gupta, Smallcase offers model portfolios—curated baskets of stocks and exchange-traded funds (ETFs)—designed around specific themes or strategies. The platform has facilitated transactions worth over ₹1.2 lakh crore and serves more than 10 million users. Additionally, Smallcase provides technology solutions to over 250 financial institutions, including research firms, advisors, wealth managers, and brokerages.
Recent Developments
In April 2023, Smallcase partnered with online brokerage Zerodha to launch an asset management company focused on index funds and ETFs, further diversifying its investment solutions.
Investor Insights
Navin Honagudi, Managing Director and Founding General Partner at Elev8 Venture Partners, expressed confidence in Smallcase's trajectory:
"India’s retail investing landscape is undergoing a seismic shift, and Smallcase has been at the forefront of this transformation. Their ability to innovate, build trust, and scale in a highly competitive market makes them a standout player."
Financial Performance
Smallcase's revenue from operations surged to ₹67.4 crore in FY24 from ₹30.6 crore in FY23. A reduction in advertising and employee benefits expenses enabled the company to reduce its losses by 74.4% to ₹34 crore in the last fiscal year.
Future Outlook
With this substantial funding, Smallcase is poised to further democratize investment opportunities in India, offering diversified, transparent, and user-friendly solutions to a growing base of retail investors. The company's focus on integrating various asset classes and enhancing technological capabilities aligns with the evolving needs of modern investors seeking comprehensive wealth management tools.